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A characteristic of creative is that they can spot opportunities that other people overlook. Opportunity seeking is associated with entrepreneurial leadership because the entrepreneur might build an organization around an unmet consumers need (DuBrin, 2010, pp.363). The idea behind the DirtMarket arose when Rossi as a manager for a commercial construction company in 1999 realized how much time and effort went into handling dirt. Getting rid of dirt was a difficult task that required calling a lot of different people, many of whom weren't the most scrupulous," (DuBrin, 2010, pp.376). "Rossi & Matheson by using the intrinsic motivation principle of creativity: people will be at their creative best when they feel motivated primarily by the interest, satisfaction and challenge of the work itself - and not by external pressures. It is an experience so engrossing and enjoyable that the task becomes worth doing for its own sake regardless of the external consequences. The componential theory of individual creativity developed by Amabile can be used to analyse Rossi & Matheson ability to identify an opportunity in dirt Market. According to this theory, creativity takes place when three components join together: expertise, creative-thinking skill, and task motivation" (DuBrin, 2010, pp.355). "Expertise refers to the necessary knowledge to put facts together. Creative-thinking skill refers to the ability to imaginatively approach problems. If you know how to keep digging for alternatives and to avoid getting stuck in the status quo, your chances of being creative multiply. Finally, task motivation refers to preserving, or sticking with problem to a conclusion, which is essential for finding creative solutions. A few rest breaks to gain a fresh perspective may be helpful, but the creative person keeps coming back until a solution emerges"(DuBrin, 2010, pp.356). An opportunity a person discovers that a new opportunity exists or a problem needs to be resolved (DuBrin, 2010, pp.350). The creative leader recognizes a good opportunity that others might miss. Instead of saying, about DirtMarket , there are marketing possibilities in dirtmarket. By thinking creatively (such as by developing new product based on mishap), a person can form a new enterprise that can keep many people engaged in productive activity. However the creative idea has to be executed properly for innovation to take place (DuBrin, 2010, pp.349).
Long-time leadership authority Rossi and Matheson regards creativity as an essential characteristic of leaders. Creative thinking enables leaders to contribute novel insights that can open up new opportunities or alternatives for the group or the organization. The role of a creative leader is to bring into existence ideas and things that did not exist previously or that existed in a different form. Leaders are not bound by current solutions to problems. Instead, they create images of other possibilities. Leaders often move a firm into an additional business or start a new department that offers another service (DuBrin, 2010, pp.349).
DirtMarket's opportunity has evolved into a small industry, serving the needs of millions of workers in the era of global business. The end product of DirtMarket's creative thinking was a business possibility rather than an invention (DuBrin, 2010, pp.351).
Creative problem solving requires a broad background of information, including facts and observations. Most creative leaders are knowledgeable, and their knowledge contributes to their charisma. A well-known case is 'Rossi & Matheson's CEO and chairman of Dirtmarket'. They contribute design and marketing decisions to most of the DirtMarket. A contributor to DirtMarket creativity is their in-depth technical knowledge of computer programming and construction dirt (DuBrin, 2010, pp.351). In Dirt Market example, a hallmark of a creative businessperson's intellect is to spot opportunities that others might over-look. Many a creative developer has seen the opportunities in abandoned areas and converted them into loft apartments and offices for small businesses that wanted to operate in an aesthetic environment (DuBrin, 2010, pp.354).
In what way have the operators of DirtMarket overcome traditional mental sets, or thought outside the box?
The concept of traditional thinking is relative but it generally refers to a standard and frequent way of finding a solution to a problem. A traditional solution to a problem is thus a modal or most frequent solution. The creative person looks at problems in a new light and transcends conventional thinking about them. Rossi & Matheson at Dirt Market business were known for their creative problem-solving ability. The central task in becoming creative is to break down rigid thinking that blocks new ideas (DuBrin, 2010, pp.356). Overcoming traditional thinking is so important to creative thinking that the process has been characterized in several different ways. The most familiar is that a creative person thinks outside the box. A box in this sense is a category that confines and restricts thinking. Because you are confined to a box, you do not see opportunities outside the box (DuBrin, 2010, pp.357). Talking to others is a good way to get ideas, yet at some point the creative problem solver has to work alone and concentrate. An idea is to search for new options that do not exist already (DuBrin, 2010, pp.354). A well-accepted model of creativity can be applied to organizations (DuBrin, 2010, pp.349). Creativity is often referred to as a numbers game, because the more ideas you try, the greater the probability of finding one that works (DuBrin, 2010, pp.358). For example Rossi as construction company manager & Matheson who has Ph.D. in computer science and master in business administration, they pick the idea from the dirt handling problem faced by contractors who used to make dozens of phone calls to find dirt or a place to dump it can instead make a single call to Dirt Marker. They thought a website, building a local search engine would be a good way to link dirt buyers and sellers based mostly on location - years before Google and Yahoo! rolled out their local search capabilities. In some respects they were ahead of their time. But contractors did not embrace the site. Most did not even have email," says Rossi. Many product innovations had their origins in flops and failures because somebody was perceptive enough to recognize the new possibilities that emerged from the setback. Success emerged from the ashes of the products that appeared to be drastic mistakes (DuBrin, 2010, pp.374). By thinking outside the box undeterred, they used the technology Matheson developed to become dirt brokers, directly matching contractors who pay them to remove the dirt with those who pay them to find it. Dirt Market takes a cut on both sides of the transaction, with profit margins averaging around 25 percent. By overcoming traditional mental sets in 2004, the company spotted another niche. When a project involves a lot of excavation, a construction company typically hires an engineering firm to remove dirt from the site, which can account for as much as 75 percent of a project's cost. So DirtMarket started an engineering contracting division that oversees a project, including hiring an engineering firm, handling the digging and removing the dirt. About 80 percent of the company,s revenues now comes from this division, which it markets primarily by word of mouth. Says Rossi, "We have a lot of repeat customers." (DuBrin, 2010, pp.376 - 377). " With the existence of Dirt Market usersÂ save tons of time and moneyÂ finding what they need -Â where they need it, andÂ when they need itÂ with tens of thousands of construction resources nationwide, and the power to search for construction and excavation materials and resources - soil, gravel, sand, construction equipment, services, and more - by location and distance" (dirtmarket.com,2011).
To what extent do you think that Matheson's having a Ph.D. in computer science and an M.B.A. helped her become a leader in the dirt business?
Matheson degree in Ph.D. helped her in setting up their business on website to direct link buyers and sellers and her MBA degree help her to manage her business in an innovative way. By using E- leadership model they established their business. "E- Leadership is a form of leadership practiced in a context where is mediated by information technology. The focus of leadership shifts from individuals to networks of relationships because the internet facilitates connecting so many people. E- Leadership could, therefore, encompass any activity undertaken by a leader when the internet connects people (DuBrin, 2010, pp.266)." So Matheson by practically using her computer and management techniques established a modern business of her time. Her degree in computer science helps her to develop software to link the dirt sellers and buyers keeping in mind the DirtMarket's business aspects. MBA degree gives her expertise about the marketing, organization strategy and human resource management to run the DirtMarket. Due to these both degrees she becomes a leader in the dirt business.
What might be a possible threat from the external environment that could hurt the business model of DirtMarket?
As DirtMarket is a innovative small business of his time. Due to their expertise they established their business through website they try to link their customer online, but unfortunately most the contractors and brokers don't have much computer know how. This may be threat to their business. There are a lot of big construction companies in the market they can set up their own network for dirt, they become competitors.
To try out your creative thinking today, make up a joke about Dirtmarket. (In this case, dirty jokes are welcome.)
Joking and kidding might be interpret either as dishonest or as extraordinarily tactful (DuBrin, 2010, pp.242). My Joke in for the DirtMarket business is that Dave is very stupid person and her wife was very clever woman, but Matheson was a modern and strange. She often were go outside naked in search of business. So to engage her Dave make DirtMarket business plan.
Discuss and describe in detail what leaders can do to foster an ethical and socially responsible organization. (If you want to relate to your own situation, or to a leader that you have read about or heard about, that is fine.) Use concepts from DuBrin, preferably also from other chapters than chapter 6.
In today's turbulent world, ethics and values are present at a number of levels for executives and managers-leaders who devote their time and energy to leading the process of value creation. This broader concept of ethical leadership empowers leaders to incorporate and be explicit about their own values and ethics. The following list provides a framework for developing ethical leadership (Freeman R. E. and Stewart L., 2006). It is based on readings concepts from DuBrin and popular business article literature. Written from the perspective of the leader, these facets of ethical leaders offer a way to understand ethical leadership. I shall try to focus here the initiatives that a leader can take to foster social responsibility, as well as create an organizational culture that encourage ethical behavior, discussed as under (DuBrin, 2010: pp.180):
Creating a Pleasant Workplace
A successful leader in an organization is capable of being develop pleasant working environment for employees. According to DuBrin a social responsibility initiative that directly affects employees' well-being is create a comfortable, pleasant, and intellectually stimulating work environment. Because many people invest about one-third of their time at work, a pleasant work environment increases the chances that their life will be enriched (DuBrin, 2010: pp.181).
Articulate and embody the purpose and values of the organization.
It is good way adopted by leaders to tell ethical values in morally true stories. Freeman R. E. and Stewart L., 2006 had discussed that it is important for leaders to tell a compelling and morally rich story, but ethical leaders must also embody and live the story. This is a difficult task in today's business environment where everyone lives in a fishbowl-on public display.
Helping Build a Sustainable Environment
To preserve sustainable external environment by leaders is compulsory for sustainable organization. As DuBrin, 2010 attempts that socially responsible leaders influence others to sustain and preserve the external environment through a variety of actions that go beyond mandatory environmental controls such as managing toxic waste.
Focus on organizational success rather than on personal ego.
Socially responsible leader always works for organization success as a whole rather than his/her personal interest. According to Freeman R. E. and Stewart L., 2006, ethical leaders understand their place within the larger network of constituents and stakeholders. It is not about the leader as an individual, it is about something bigger-the goals and dreams of the organization. Ethical leaders also recognize that value is in the success of people in the organization.
Engaging in Philanthropy
To donate money to various charities and welfare organization is an important component of socially responsible organization. DuBrin, 2010 discussed that "a standard organizational leadership approach to social responsibility is to donate money to charity and various other causes. Most charities are heavily dependent on corporate support, Colleges, universities, and career schools also benefit from corporate donations. Many of the leading philanthropists donate money during their lifetime rather than giving through their estates. The most striking example is Bill and Melinda Gates of Microsoft, who formed their own foundation whose primary aims globally are to reduce extreme poverty, combat AIDS, and vaccinate children against illnesses"(DuBrin, 2010: pp.183).
Find the best people and develop them.
Ethically responsible leader prefer integrity than experience and skills of hiring people for organization leadership. This was explained by Freeman R. E. and Stewart L., 2006 that ethical leaders pay special attention to finding and developing the best people precisely because they see it as a moral imperative-helping them to lead better lives that create more value for themselves and for others. Finding the best people involves taking ethics and character into account in the selection process.
Working with Suppliers to improve Working Conditions
To develop good working environment for suppliers in an organization is an important characteristics of socially responsible leader. DuBrin, 2010 attempted to discuss that "an opportunity for practicing social responsibility is for company leaders to work with suppliers to improve physical and mental working conditions. Helping suppliers to improve working conditions has been conceptualized as corporations being vehicles for positive social change-yet another way of demonstrating corporate social responsibility. Gap Inc, took a major initiative to begin improving working conditions at suppliers" (DuBrin, 2010: pp.184).
Establishing Written Codes of Ethical Conduct
Ethically responsible leader maintains written codes of conducts and assures that everyone in the organization is well aware of these. According to DuBrin, 2010 that "many organizations use written codes of conduct as guidelines for ethical and socially responsible behavior. Such guidelines continue to grow in importance because workers in self-managing teams have less leadership than previously. A written code of conduct is more likely to influence behavior when both formal and informal leaders throughout the firm refer to it frequently. Furthermore, adherence to the code must be rewarded, and violation of the code should be punished" (DuBrin, 2010: pp.185).
Developing Formal Mechanisms for Dealing with Ethical Problems
To handle ethical problem in an organization leaders usually adopt formal procedures for its ratification. DuBrin, 2010 had reported here that "many large organizations frequently establish ethics committees to help ensure ethical and socially responsible behavior. The committee establishes policies about ethics and social responsibility and may conduct an ethical audit of the firm's activities. In addition, committee members might review complaints about ethical problems" (DuBrin, 2010: pp.186).
"A whistleblower is an employee who discloses organizational wrongdoing to parties who can take action. So it is important for leaders at all levels to create a comfortable climate for legitimate whistleblowing. The leader needs to sort out the difference between a troublemaker and a true whistleblower. Being a whistleblower requires a small act of leadership, in the sense of taking the initiative to bring about change. However, the organization turned in might not think the change is constructive" (DuBrin, 2010: pp.186).
Providing Training in Ethics and Social Responsibility
An ethically and socially responsible leader ensures training for employees in an organization. DuBrin, 2010 discussed that forms of ethics training include messages about ethics and social responsibility from company leadership, classes on ethics at colleges, and exercises in ethics. These training programs reinforce the idea that ethically and socially responsible behavior is both morally right and good for business.
Make tough calls while being imaginative.
Freeman R. E. and Stewart L., 2006 had attempted to discuss that "ethical leaders inevitably have to make a lot of difficult decisions, from reorienting the company's strategy and basic value proposition to making individual personnel decisions such as working with employees exiting the organization. Ethical leaders do not attempt to avoid difficult decisions by using an excuse of "I'm doing this for the business." The ethical leader consistently unites "doing the right thing" and "doing the right thing for the business."
Frame actions in ethical terms.
According to Freeman R. E. and Stewart L., 2006 that "ethical leaders see their leadership as a fully ethical task. This entails taking seriously the rights claims of others, considering the effects of one's actions on others (stakeholders), and understanding how acting or leading in a certain way will have effects on one's character and the character of others. There is nothing amoral about ethical leaders, and they recognize that their own values may sometimes turn out to be a poor guidepost" (Freeman R. E. and Stewart L., 2006).
Placing Company interests over Personal Interests
Ethically responsible leader ensured to organization that all the time company interests are dominated over personal interests. "Many ethical violations, such as senior managers voting themselves outrageous compensation, stem from managers placing their personal interests over the welfare of the company and other employees" (DuBrin, 2010: pp.187).
It can be concluded from my above discussion that ethically and socially responsible leader is really a main pillar to develop an organization. He never prefers his personal interests over company worth. He develops a framework for an organization and ensured its smooth functioning for its ethical and social welfare.
Discuss and describe in detail the concepts and models from DuBrin that you think will have the greatest impact on your present (or future) leadership. Explain why you see these models as the most important ones. (NB that this does not require holding a management position. Leadership is exercised in all social settings.)
LeadershipÂ models are structured approaches to providing effective guidance and decision making within an organization. Over the years, proponents of different types ofÂ leadershipÂ theoryÂ have developed programs aimed at categorizing different models, sometimes explaining when and where certain models are likely to function best for a given situation. While the names of these differentÂ leadership stylesÂ change from time to time, they all revolve around the key factors of decision making, recognition of the skills of team players, and the ongoing process of encouraging the development of future leaders for the organization (wisegeek.com, 2011). A major point about leadership is that it is not found only among people in high-level positions. Leadership is needed at all levels in an organization can be practiced to some extent even by a person not assigned to a formal leadership position. The ability to lead others effectively is a rare quality (DuBrin, 2010, pp.3). Here I shall attempt to highlight some models and concepts discuss by the Dubrin to be or will have greatest impact on my present or future leadership style. I feel these models or things that I need and found them lacking to my personality:
Situational Leadership Model:
"It was developed by Blanchard K. H. and his colleagues, explains how to match leadership style to the capabilities of group members on a given task. For example, someone might need less guidance from a supervisor when you are skilled in a task than when you are performing a new task" (DuBrin, 2010, pp.142).With thisÂ leadershipÂ model, the emphasis is on identifying the immediate need in a given set of circumstances, and choosing actions that are the most likely to produce the desired result (wisegeek.com, 2011). I thought this will help me in my future job as manager in any organization. "This means that aÂ manager employing this type ofÂ leadershipÂ approach may at times choose to keep communication on a one-way basis, providing instructions without seeking feedback from employees. When the circumstances change, the manager may shift to seeking an open channel of communication with others, and in some cases choose to delegate responsibilities to team members who have demonstrated the ability to effectively manage those tasks withoutÂ direct supervision" (wisegeek.com, 2011).
Â Transformational Leadership Model:
"It focuses on what the leader accomplishes yet still pays attention to the leader's personal characteristics and his or her relationship with group members. The transformational leader helps bring about major positive changes by moving group, organization or society" (DuBrin, 2010, pp.83). While this approach is still result-driven, part of the desired result is the steady and consistent growth of everyone entrusted to the leader's care. This model will help me since "a transformational leader places a great deal of emphasis on the needs and potential of employees, often functioning as both advocate andÂ mentorÂ to those employees. The goal here is to promote stimulation of both creativity and intellectual enhancement within the group, often by encouraging the sharing of information and experiences between all the group members. Transformational leaders know that achieving the goals of the company is more likely when employees are challenged, have opportunities to advance, and receive what they need to be successful as individuals as well as part of a team" (wisegeek.com, 2011).
Functional Leadership Model:
"With the functionalÂ leadershipÂ model, the emphasis is more on form and function than on people. Here, the creation and establishment of policies and procedures is considered key to maintaining order and productivity. This model will be helpful for me since when employing the basics of thisÂ leadershipÂ model, the goal of the manager is to match the tasks at hand with the skill sets of employees, with an eye toward achieving the highest level of efficiency. From time to time, evaluation of policies, procedures, and position related tasks are reviewed, with an eye of improving the overall process. Since this approach is ultimately more concerned with how an organization runs than in who is running it, employees are more likely to be considered in terms of how well they fit into the current process than in terms of what they may offer to the company in the future" (wisegeek.com, 2011).
Transactional Leadership Model:
It focuses on "more routine transactions, rewarding group members for meeting standards (contingent reinforcement)" (DuBrin, 2010, pp.83). It can be explained that "transactional leadership is prone towards well-developed structures with well-defined rewards and punishment. Organizational culture is one of strict controls within which promotions are handed out for superior performance and punishment for lack of performance or rules violation" (hubpages.com, 2011). It will be helpful for me since "it leads by reward and punishment, comfortable when rules of conduct are strictly defined and when the rules are more important than the personnel" (hubpages.com, 2011).
Â Participative Leadership Model:
It deals with "group members to gather their suggestions, and then considers these suggestions seriously when making a decision. It best suited for improving the morale of well-motivated employees who perform non-repetitive tasks" (DuBrin, 2010, pp.141). It can be discussed as "participative leadership is the type of leadership that allows personnel from all levels of the organization to be involved in the decision-making process. It will guide me that more participation will lead to greater ownership in the mission of the company" (hubpages.com, 2011).
Charismatic Leadership Model:
The various definitions of charisma have a unifying theme. "Charisma is a positive and compelling quality of a person that makes many others wants to be led by that person" (DuBrin, 2010, pp.68). It was explained that "Charismatic Leadership moves an organization by its can-do personality. Human personnel are moved to perform by the charismatic leader's ability to persuade through kind words or powerful argument. This type of leadership often depletes human capital of self-motivation. Such charismatic stimulation can be transformational but not always" (hubpages.com, 2011). I may be use since it characterized by big personalities, love the limelight, are the focal point of the organization and often leaves a large void when they depart.
WICS Leadership Model:
It is a "leadership model that gives the opportunity in understanding leadership as a set of decision processes which embodies Wisdom, intelligence and creativity, along with other higher cognitive processes. The main reasons of its importance of its great combination of three cognitive factors that help the leaders to take a good decision. The right information, at right time with right collaboration provides the good approach to handle any uncertain situation. I will help me to think towards right direction and lead the business because creativity assisting in generating new ideas, analytical intelligence helps to prove this idea in practice and wisdom give the general feasibility, is it possible and practical to go with such idea" (DuBrin, 2010:56-57).
It is important to conclude that there is no one rightÂ leadershipÂ modelÂ that covers all situations. Managers are often called upon to make use of a primaryÂ modelÂ ofÂ leadership, but augment that style with periodic use of approaches inherent in other models. For this reason, there are many different seminars, books, and training programs that include hybrid forms of leadershipÂ models that have their basis on these approaches, but may incorporate elements of each into a new style designed to fit well into the culture of a givenÂ corporation.